Cabcharge Australia (CAB)

Credit Suisse has confirmed its “outperform" rating on
Cabcharge
Australia after the company announced that its 49 per cent owned subsidiary Cityfleet has acquired the outstanding 20 per cent minority interest in its UK taxi business ComCab. The broker said the acquisition was not going to make a significant difference at the group level in the near term. However, it would enable Cabcharge and ComfortDelGro to continue to develop and pursue their ambitions in the UK market. The broker believed the sell-off of Cabcharge over the past quarter has been overdone, despite the broker having concerns about the potential for some negative sentiment to re-emerge as a result of both further litigation and the eventual sharing of access to its proprietary cards. The broker said the company was not on a demanding multiple, and offered a 2012 financial year gross dividend yield of 11.6 per cent, and expected Cabcharge to trade back towards $6.15 over the next 12 months.